The rain in Spain stays mainly in the plain...
SHORT NOTE on the Spanish yields which have now broken up - again....and the stock market is at concerning levels despite MASSIVE LTRO and LTRO-2 help - clearly this is no new trend and it could lead into a busy Easter for the European politicians who continue to play hide-and-seek with the market.
Todays Spanish auction result is here: That Spanish Auction (Source: FT Alphaville)
Very bad day and it seems we have broken some “bad levels” on yield – Source: Credit Suisse
---and likewise the stock market..
The LTRO money is running out, and standing on its own, Spain's capital markets are clearly having an issue. We look for "bank recapitalisation" soon - after Easter as first sign of further weakness.